23350 IS THE IMMEDIATE SUPPORT; 23660 IMMEDIATE HURDLE

 

23350 IS THE IMMEDIATE SUPPORT; 23660 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended marginally in the green while S & P 500 and Nasdaq fell 0.2% each on Friday as shares of Nvidia pulled back for a second day.

 

U.S. business activity hit a 26-month high in June amid a rebound in employment while price pressures subsided considerably.

 

U.S. 10-year treasury yield fell 1 bps to 4.257%. Dollar index rose 0.2% to 105.83, it's highest level in seven weeks. Gold tumbled 1.6% to $2321 per ounce.

 

WTI crude futures fell 0.7% to $80.73 while Brent futures fell 0.6% to $85.24 a barrel.

 

European markets fell 0.4%-0.6%. British retail sales volumes rose 2.9% in May, well ahead of expectations for a 1.5% increase and rebounding from a dour April performance. French business confidence held steady for a third straight month and German and British flash purchasing managers’ index figures broadly showed a slowdown in the recent uptick in business activity.

 

Japan’s May core inflation data came in slightly cooler than expected.

 

For the week, Dow rose 1.4% for its best weekly performance since May. S & P 500 registered a 0.6% weekly advance while Nasdaq finished flat. Main European markets gained 0.9%-1.7%. In Asia, Hang Seng and Nifty rose 0.5% and 0.2% respectively while Nikkei and Shanghai fell 0.6% and 1.1% respectively.

 

U.S. 10-year treasury yield rose 3 bps during the week to 4.257%. Dollar index rose 0.3% to 105.83, extending the winning streak to third consecutive week. Golf fell half a percent to $2321 per ounce. Oil rose nearly 3%, extending the winning streak to second straight week.

 

AT HOME

 

Benchmark indices closed with cuts of three tenth of a percent each after a choppy session. Sensex settled at 77209, down 269 points while Nifty lost 66 points to finish at 23501. Nifty mid-cap and small-cap indices fell 0.1% and 0.2% respectively. Nifty FMCG index fell 1.2%, becoming top loser among the sectoral indices, followed by 1.1% lower PSU Bank and Oil & Gas indices. Media index was the top gainer, up 1%, followed by 0.8% higher IT and Consumer Durables indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1790 cr, 48 cr and 1688 cr respectively. DIIs were net buyers to the tune of Rs 1237 cr.

 

Rupee appreciated 12 paise to end at 83.53/$.

 

For the week, Sensex and Nifty gained 0.3% and 0.2% respectively, extending the winning streak to third consecutive week and hitting fresh record highs.

 

OUTLOOK

 

Today morning, Nikkei is up 0.2% while Hang Seng and Shanghai are down 1% and 0.6% respectively. GIFT Nifty is suggesting around 100 points lower start for our market.

 

In Friday's report we had said that 23800-23850 continued to be next target area for Nifty while 23400-233350 continued to be immediate support zone on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 23667, slipped to end at 23501 and is set to open around 23400 today.

 

23350, around which an erstwhile resistance line adjoining tops made since January is placed, is the immediate support to eye, upon breach of which, 23206, the low made on 11th June, would be next downside level to eye; 23660, around which Nifty made a double top last week, is the immediate hurdle.

 

For Banknifty, 51957, the top made on Wednesday, coincided with a rising trendline adjoining tops made since February and hence is the immediate hurdle, upon crossover of which, 52700 would be next target. 50700 is the immediate support on the hourly chart, upon breach of which, 49900, the low made during the week, would be next downside level to eye.

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